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Top 10 Fintech Innovations


15 min read

By 2026, the fintech services market will grow to $31.5 billion. This is roughly four times what it was six years ago.

Many fintech companies and seasoned professionals will remain innovative in these and other areas in 2024, so financial services businesses should closely monitor IT innovations in fintech.

In this article, I focus exclusively on what our team believes to be the trendiest fintech innovation ideas and the most important concepts you should know as we enter a new era of processing transactions.

The growth of financial innovation depends on the technology that underpins economic goods and services. These are the eleven most crucial digital banking innovations in the fintech industry that will influence the fintech sector this year. Let’s dive into the world of the latest fintech innovations in banking!

1. Blockchain & IoT

I want to begin the overview with the Internet of Things (IoT) and blockchain autonomous database systems. These innovations have transformed the world of investment management and financial solutions.

IoT wealth management platforms might significantly expand the possibilities of banking and financial apps. For example, a linked security camera positioned within a bank may identify any irregularities in client behavior or potential safety vulnerabilities and report the information to regulators instantly.

Today, blockchain is regarded as the most secure technology for database management in all areas. It works on a guideline that records every particular change, data transfer, and effort in tweaking data as separate data entries. The technology creates transparency for all partners’ actions, making removing and tampering with any data impossible.

Here are some noteworthy applications of this technology:

  • Real-time transaction settlement. Banks use smart contracts to pay collateral and cash components simultaneously. This strategy improves the efficiency and scalability of cross-border sales, such as transaction processing, securities lending, and stock exchanges.
  • Support services for digital assets. This strategy improves the efficiency and scalability of cross-border sales, such as transaction processing, securities lending, and stock exchanges.
  • Support services for digital assets. Institutional investors are exploring distributed ledger technology (DLT) capabilities for their digital assets. Examples of these services are tokenization for unlisted corporations or private equity funds. They allow spot transactions between traditional currencies and cryptocurrencies on digital platforms. Also, they offer safe custody services such as encryption for key escrow.
  • Authentication ecosystems based on zero-knowledge proof. Customers may now use shared data from authorized partner institutions. It helps to validate their identity online, in person, or over the phone. This simplified method streamlines authentication processes and provides easy access to critical services like health data and government services.
  • Decentralized finance (DeFi). DeFi is reshaping the financial environment through deterministic smart contracts. This removes counterparty risks and decreases dependency on intermediary parties, resulting in cost savings. Another advantage of DeFi is real-time transparency, which improves market efficiency and confidence.


The future of banking apps will rely on better connections between mobile apps and other devices for smarter transactions. Instead of waiting in line for guidance, consumers may do many tasks directly through the mobile banking app, including meeting KYC (Know Your Customer) regulations.

Blockchain provides security for fintech innovations apps. The world’s most prominent financial institutions and banks, like Visa or DBS, are now utilizing fintech innovation in wealth management. Aside from unprecedented data security benefits, Blockchain provides maximum data openness, quicker data transfer, and lower transaction costs.

2. Payment Solutions

Robust biometric identification is an effective technique for deterring hackers and cyber-criminality among leading cybersecurity technologies. Consider how to pay for an item on the internet with a smart card and a phone. Integrating smartcard chip technology with multi-factor biometric verification is exceptionally efficient if discussing payment innovations similar to solutions offered by companies like Stripe.

A cardholder can install two identifiers on the phone terminal and use them to safeguard his payment throughout a digital transaction. The biometric multi-factor carousel works on any iOS/Android/Windows phone, laptop, or desktop. But these items must have Facial Recognition, Voice Control, Lock Pattern Behavioral, Fingerprint Behavioral, and Button Stroke Dynamics Behavioral.

When buying on the internet, the user can utilize his authorized smart card to pay by speaking or placing a picture or fingerprint through the sensors on the phone.

The payment apps are significantly safer for fintech innovations future, and hackers are prevented from carrying out transactions using stolen credentials. The high degree of security (biometrics) ensures confidence and transparency in all transactions, including innovation in payments with mobile phones.

Moreover, the backend tracking server supports thousands of transactions per second within the financial institution or card issuers. This allows the CSO to supervise system quality and productivity in aspects of EER, FAR, and biometrics thresholds. Such a process lets us obtain sufficient results.


Voice-enabled fintech payment innovations are an alternative for businesses wanting to create POC initiatives on a small budget. There is a possibility that the technology will be utilized for payments at retail shops that do not have contactless payment devices. It also enables people with visual disabilities to join the cashless economy.

3. Open Source & SaaS

Speed and flexibility are crucial for new enterprises and fintech technological innovation, especially in the digital economy’s intense rivalry and winner-take-all tendencies. For tech players and conventional financial institutions developing new fintech enterprises, open-source software, cloud-based technology, and software as a service (SaaS) have become indispensable.

Using open source in fintech refers to integrating or developing software where the source code is freely available for modification, distribution, and use. In the summer of 2023, I was pleased to be a speaker at the World Banking Forum in Greece, where I shared my insights on the topic “Open source in banking: opportunities and innovations for the financial sector.” My speech was well-received and resonated strongly with the audience. You can watch the recording here.

Software as a service (SaaS) allows businesses to utilize software as required without owning or maintaining it. In comparison, serverless architecture eliminates the need for financial services companies to operate their servers. This lets them free up time and energy for clients and management.

Serverless technology fintech innovation also saves money. Costs are tied to running software code rather than being created continuously, independent of business requirements. It also promotes flexible scaling, which reduces idle time and losses while increasing fintech software development efficiency.


Open-source software is a blessing for businesses trying to multiply. It offers a free code base that gives developers a strong foothold in developing their apps. For instance, in 2019, McKinsey’s analytics business launched Kedro, an open-source platform. It enables data scientists and engineers to design data pipelines.

4. Artificial Intelligence

The rise of artificial intelligence, machine learning, and robotic process automation offers numerous advantages to those in the finance industry. They include lower loan default risk, better risk management, process efficiency from data gathering and analysis, and improved customer experiences.

Among significant advancements of artificial intelligence in the sector of financial innovations are robo advisors. They are becoming increasingly common in the financial industry. They provide a simple and economical alternative for consumers with no financial expertise or experience to begin investing.

These online platforms employ sophisticated algorithms to generate customized investing portfolios depending on your risk tolerance and financial objectives. They use cognitive computing technologies and big data trends to establish the best investing plan for each person.


Bank innovation uses chatbots to handle basic client service questions while using IBM Watson for financial analysis. Because these bots increasingly utilize AI, they may learn from customer interactions and tailor future consumer interactions accordingly. Machine learning uses past data and real-time inputs to analyze and predict future client behavior, which can benefit fintech businesses.

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5. Gamification

Gamification is expanding rapidly across fintech innovations involving insurance, banking, stocks, and consumer banking. Some organizations are even investigating the prospect of investing in gamification and combining gamification with blockchain technology.

Financial organizations are gamifing their services and products. Gamification is one of the best fintech innovations. It’s a design approach that uses game elements to engage users in certain activities, like scorecards or awards. These games help people monitor their spending and reward them for making wise financial industry choices.


Acorns is an app that invests spare change from debit or credit card purchases into exchange-traded funds. Since its inception in 2012, the firm has attracted over 8.2 million customers who have invested $2 billion on its platform.

One more gamification business, Flourish Savings, offers customers incentive payments that they can get later. According to Apis Partners’ research, “Gamification is about client centricity: it helps consumers achieve their goals in an emotionally engaging way.”

6. Cloud Computing

Financial organizations should be aware of three types of cloud systems: public, hybrid, and private. The infrastructure is held by cloud computing service providers, supplying cloud services to many enterprises or the general public. A hybrid cloud architecture is made up of two or even more varieties of clouds (private and public) that operate independently but are linked by proprietary technologies. The infrastructure is developed for specific usage. It is deployable in business data centers or through other hosting services.

Among recent fintech innovations in banking, cloud computing absolves banking firms from non-core operations like IT infrastructure and data centers while allowing them to use flexible storage and computing services at a cheaper cost. Simultaneously, the cloud is giving rise to new formats such as open banking and banking-as-a-service. It upends the eternal relationship between clients and providers of financial services.


Billte is a Swiss firm that provides invoice management software to help businesses automate their billing procedures. They convert unstructured invoices into e-bills and QR-coded ones. The technology then distributes bills via several channels, including email and SMS, as well as automatic notifications and real-time data. Furthermore, it records partial payments in many currencies, increasing performance and liquidity for small and medium-sized businesses.

7. API-Driven Banking Models

API-driven banking models refer to a modern approach in the financial services sector where banks and other financial institutions use Application Programming Interfaces (APIs) to connect their services and data with other external software and applications.

In an API-driven model, banks open up their systems to third-party developers, fintech companies, and even other banks. These external entities can access selected banking services and customer data (with consent) through APIs. This enables the creation of new financial products and services that are integrated directly with the bank’s systems.


A real-life example of API-driven banking is Plaid’s partnership with various banks. Plaid provides an API that connects bank accounts to financial apps, allowing users to securely share their financial data.

For instance, when a user links their bank account to a budgeting app like Mint using Plaid, the app accesses their financial information through Plaid’s API. This enables the user to track spending and manage finances efficiently.

This collaboration showcases how banks can enhance customer experiences and offer more services by integrating with third-party applications through APIs.

8. Embedded Finance

Embedded finance refers to the integration of financial services into non-financial companies’ platforms and ecosystems. This trend allows businesses that traditionally haven’t been involved in the finance sector to offer financial products and services directly to their customers as part of their existing offerings.

This seamless integration provides customers with a more intuitive and efficient experience, blurring the lines between traditional banking and everyday activities. Companies from various sectors, including retail, tech, and transportation, are adopting this trend to offer financial services, transforming the user experience and opening new revenue streams.


Amazon, primarily an e-commerce platform, has integrated several financial services into its ecosystem, enhancing the shopping experience for its customers.

One such service is “Amazon Pay.” This feature allows customers to use a secure and straightforward payment method directly on Amazon’s platform and on other third-party websites where Amazon Pay is accepted. Customers can complete purchases using the payment methods already stored in their Amazon accounts, eliminating the need for entering payment details multiple times across different sites.

Another example is “Amazon Lending,” which provides short-term loans to small and medium-sized businesses that sell on Amazon. This service integrates directly into the seller’s account, offering tailored financing options based on the seller’s history and sales performance on Amazon. It simplifies the process for these businesses to obtain capital, often with less hassle and quicker approval times compared to traditional bank loans.

9. Hyper Automation in Financial Institutions

RPA, robotic process automation, allows businesses to implement software robots like chatbots at scale. It is becoming a vital element of the digital revolution, but technology is pushing its limits. The primary role of RPA is to delegate workflow data management and company interactions to robots. The primary criteria for validating RPA tech viability are high consistency, clear rationale, and robust stability. RPA will become more wholly integrated with AI in the future. It will increase its efficacy in dealing with increasingly complicated business contexts, expediting offerings, and compliance with fintech regulations.

Simply described, hyper-automation is the integration of automation, robotics, and AI technology to enhance the productivity of industrial operations.

Hyper automation necessitates the employment of several tools, techniques, and frameworks, including:

  • AI: Artificial intelligence
  • Machine Learning
  • RPA: Robotic process automation
  • BPM & iBPMS: Business process management & intelligent business process management suites
  • iPaaS: Integration platform as a service
  • Low-code platforms
  • Event-driven architecture
  • In addition, various tools and technologies


Have you ever heard of digital human support services? 3D chatbot models in the virtual world are made using AI technology. They can communicate with and reply to users’ activities in the digital world. The banking sectors in Meta use them to perform 24/7 client service and other financial duties. Thanks to hyper-automation technologies that link to the bank’s backend systems, they provide instant client help.

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10. RegTech

Among the other top fintech innovations is RegtTech — the use of technology to monitor compliance requirements. Regulations digital solutions use technologies that can manage massive datasets or unstructured data to enable information monitoring and reporting. These technologies also assist financial institutions in complying with changing rules in various countries worldwide.

Political regimes shift, and governments increasingly strive to support higher cybersecurity rules. Hence the emergence of RegTech may provide assistance to safeguard fintech security. People developed these solutions to manage large data transfers to comply with regulations.


Drata is a tool for monitoring firm security and automating data compliance for SOC 2 and other requirements. Fintech users may identify security threats, manage suppliers and staff training, and maintain track of security policies. Individuals utilize Drata in a variety of areas, including banking, healthcare, software, and others

11. Peer-To-Peer Lending

Individuals borrow money from individuals in P2P lending, while companies borrow from individuals in peer-to-business lending. Compared to traditional loan markets, these lending methods allow investors to earn better returns. Investors are matched with pre-approved and extensively verified borrowers to accomplish this.

Innovative businesses can join existing fintech industry giants to acquire market share and impact new markets. Every platform or organization can use its unique features to promote the development of financial services, like P2P lending, through collaboration. As a result, partnerships will emerge as a critical aspect in influencing the future of peer-to-peer lending.


Fintech companies such as Funding Circle have created platforms that allow matching borrowers and lenders. These platforms often collect a fee based on the borrower’s payback.

With the introduction of peer-to-peer (P2P) lending in the financial industry, platforms such as Prosper Marketplace or Upstart have transformed the lending environment. These platforms enable individuals and small business owners to get loans straight from people who give micro loans to them.

12. Digital Identity Verification

Biometric technology is becoming increasingly crucial in fintech as identity verification becomes more prevalent. It provides practical solutions for verifying online transactions, streamlining account access, and even doing away with passwords.

It is also very critical to maintaining safe and smooth financial transactions. This helps stop fraud and ensures that only authorized people can access important financial information.

In the future, banking security will focus on verifying identity using fingerprint scanners, audio analysis, and facial recognition software. Financial institutions can reduce their reliance on passwords with these measures, which are frequently compromised.

Many mobile banking applications employ biometric authentication to verify a user’s identity before giving account access. Customers benefit from this as it eliminates the need for passwords or security tokens. It allows them to access their accounts with a simple fingerprint or face scan.


RapidID, an Australian firm, provides an electronic identity verification solution to ensure digital customers are who they claim to be. It assists traditional financial institutions in safeguarding transactions and mitigating money laundering and terrorist financing. 

Furthermore, mobile phone systems process biometrics and identity papers to authenticate identities, which speeds up the process. The business also employs face recognition technology to verify that only authorized staff carry out transactions. As a result, the solution provided by RapidID decreases human error and eliminates the possibility of security breaches.

13. Inclusion Technologies in Financial Industry

Financial inclusion technologies are innovative technological solutions aimed at extending access to financial services to those who have been historically excluded or underserved by the traditional banking system. This includes people in low-income groups, those living in remote or rural areas, and small businesses that lack the typical qualifications for mainstream banking services.


A real-life example of financial inclusion technology is M-Pesa, a mobile phone-based money transfer, financing, and microfinancing service launched in 2007 by Vodafone for Safaricom and Vodacom, the largest mobile network operators in Kenya and Tanzania.

M-Pesa allows users to deposit, withdraw, transfer money, pay for goods and services, access credit and savings, all with a mobile device.

This service is particularly impactful in regions where access to traditional banking infrastructure is limited. In many rural areas of Kenya, for instance, banks are scarce or nonexistent, making financial services inaccessible for many residents. M-Pesa fills this gap by enabling users to perform basic financial transactions through their mobile phones.

14. Low Code

Low code platforms (LCPs) enable developers and users to create programs using graphical UI and settings rather than standard computer coding. While still in their infancy, the media have the potential to eliminate the requirement for limited and costly software skills.

Businesses frequently use NCDPs to speed the building of cloud-based apps while maintaining the company’s strategic alignment. For example, automating audit trails and document production on low-code systems may enhance compliance. This is highly beneficial to financiers and fintech startups that need to adapt swiftly to market movements.


Google Cloud has invested in and bought Unqork and AppSheet. Unqork is a no-code software platform. And AppSheet is one of the major competitors in the low-code and no-code marketplace. Both services enable regular workers to create apps without needing professional coding knowledge.

According to Alex Schmelkin, Chief Marketing Officer of Unqork, tasks that formerly took a decade for financial businesses to perform may now be completed months after adopting “no-code.” Unqork currently employs over 100 programmers, primarily focusing on financial services.

Let’s Wind Up!

These pivotal technologies and new trends intertwine increasingly, creating an incredible boost in fintech and driving innovation in the fintech industry. Currently, specific areas in finance are using technology advancements to develop innovative apps, generate value, and alter competition dynamics.

Traditional financial institutions will need to harness their enormous resources in the years ahead. It will let them manage an evolving tsunami of disruptions to remain at the forefront of the ever-changing financial landscape.

Are you ready to completely transform your financial services? Contact the highly qualified specialists at DashDevs now to see how our cutting-edge software engineering service can help you succeed.

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Table of contents
What are fintech innovations, and why are they important?
Fintech innovations refer to technological advancements and creative ideas implemented in the financial sector to improve and automate the delivery and use of financial services. They are important because they facilitate better, faster, and more secure financial transactions, increase accessibility to financial services, and often lead to more cost-effective solutions for both businesses and consumers.
How are fintech innovations changing the way consumers manage their finances?
Fintech innovations are revolutionizing consumer finance management through mobile banking apps, online investment platforms, personal finance management tools, and digital wallets. These technologies offer users greater control over their finances with real-time tracking, automated savings, and personalized financial advice, making financial management more accessible and user-friendly.
What are the potential risks associated with fintech innovations?
While fintech innovations offer numerous benefits, they also carry potential risks like data security breaches, privacy concerns, and the threat of cyber-attacks. Regulatory compliance is another challenge, as the fast pace of innovation can outstrip existing financial laws and regulations, creating legal uncertainties. Users and providers must be vigilant about these risks and adopt robust security measures.